MONTREAL, Aug. 4, 2015 /CNW Telbec/ - Birks Group Inc.
(NYSE MKT LLC: BGI) and Rideau Recognition Solutions Inc. announce
that they have executed a definitive asset purchase agreement
whereby Birks Group sold its Corporate Sales Division, also known
as "Birks Business", to Rideau for CAD $5.625 million (or approximately USD $4.3 million). The Corporate Sales Division
services business customers by providing them with unique items for
recognition programs, service awards and business gifts.
Under the terms of the agreement, Rideau acquired the existing
inventory of the Birks Corporate Sales Division and will continue
the employment of the existing employees of the Corporate Sales
Division. In addition, as part of the agreement, Birks will supply
Rideau with Birks-branded jewelry and watches and Birks will
receive ongoing royalty payments from Rideau related to the license
of the Birks Business Brand and future sales of Birks-branded
products.
"The sale of our Corporate Sales Division is part of our
long-term corporate strategy to focus our efforts and resources on
our core objectives to develop and grow the Birks product and
retail brands," said Jean-Christophe Bédos, President and Chief
Executive Officer of Birks Group. "By unlocking the value of our
corporate sales operations through this agreement with Rideau, we
will reinvest the funds to continue to strengthen our retail
distribution with the goal of generating long-term brand and
shareholder value. Rideau's team members are seasoned experts in
the field of employee recognition and corporate gifting. We
are pleased that our Corporate Sales Division employees are joining
the Rideau team and are confident that Rideau, with the addition of
this corporate sales team, will be a great partner in delivering
the superior brand experience that Birks Business customers
expect."
"There's great synergy in this partnership," said Peter W. Hart, Chief Executive Officer of
Rideau. "We're combining the power of the Birks Brand with the
strength of Rideau's technology, distribution capabilities and
leadership in the recognition market. Both companies are made
stronger because of it. I speak on behalf of our employees when I
say we're honoured by this vote of confidence from this iconic
Canadian company."
About Birks
Birks Group is a leading operator of
luxury jewelry stores in the United
States and Canada. As of
July 31, 2015, the Company operated
28 stores under the Birks brand in most major metropolitan markets
in Canada, 17 stores in
Florida and Georgia under the Mayors brand, one store
under the Rolex brand name and two retail locations in Calgary and Vancouver under the Brinkhaus brand. Birks was
founded in 1879 and developed over the years into Canada's premier retailer, designer and
manufacturer of fine jewelry, timepieces, sterling and plated
silverware and gifts. Mayors was founded in 1910 and has maintained
the intimacy of a family-owned boutique while becoming renowned for
its fine jewelry, timepieces, giftware and service. Additional
information can be found on Birks Group web site,
www.birksgroup.com.
About Rideau Recognition Solutions
Rideau helps Global
2000 employers inspire greatness in their people through the power
of recognition and rewards. Rideau's full suite of employee
recognition and reward solutions are used to motivate and engage
more than two million employees in more than 90 countries to adhere
to their company's values, increase productivity, boost revenues,
achieve reduced costs from lower absenteeism and turnover, and
improve overall customer satisfaction. Rideau is a full service
provider of tailor-made programs delivering everything from
strategy, program design, advanced software, training, program
management and analytics. Find out more at www.rideau.com.
Forward Looking Statements
This press release contains certain "forward-looking"
statements concerning the Company's performance and strategies,
including the Company being able to reinvest the
funds to continue to strengthen our retail distribution with the
goal of generating long-term shareholder value; and that Rideau
will be a great partner in delivering superior brand
experience. Because such statements include various risks and
uncertainties, actual results might differ materially from those
projected in the forward-looking statements and no assurance can be
given that we will meet the results projected in the
forward-looking statements. These risks and uncertainties include,
but are not limited to the following: (i) economic,
political and market conditions, including the economies of the
U.S. and Canada, which could
adversely affect our business, operating results or financial
condition, including our revenue and profitability, through the
impact of changes in the real estate markets (especially in the
state of Florida), changes in the
equity markets and decreases in consumer confidence and the related
changes in consumer spending patterns, the impact on store traffic,
tourism and sales; (ii) the impact of fluctuations in foreign
exchange rates, increases in commodity prices and borrowing costs
and their related impact on the Company's costs and expenses; and
(iii) the Company's ability to maintain and obtain sufficient
sources of liquidity to fund its operations, to achieve planned
sales, gross margin and net income, to keep costs low, to implement
its business strategy, maintain relationships with its primary
vendors, to mitigate fluctuations in the availability and prices of
the Company's merchandise, to compete with other jewelers, to
succeed in its marketing initiatives, and to have a successful
customer service program. Information concerning factors that could
cause actual results to differ materially are set forth in our
Annual Report on Form 20-F filed with the Securities and Exchange
Commission on June 26, 2015 and
subsequent filings with the Securities and Exchange Commission. The
Company undertakes no obligation to update or release any revisions
to these forward-looking statements to reflect events or
circumstances after the date of this statement or to reflect the
occurrence of unanticipated events, except as required by
law.
SOURCE Birks Group Inc.